October 14, 2004

Grain Prices In Australia At 5-Year Low

Grain prices In Australia are at a five-year low, heading into this summer's harvest.

Market analyst Malcolm Bartholomeaus says returns for wheat are down $30, while feed barley, peas and canola are all down on the long-term average prices.

He says the exceptional large grain crops in the Northern Hemisphere are forcing prices down.

"Wheat production this year globally is at a record high, around about 615 million tons, and that's up nearly 65 million tons on the year before; so even though global stocks and a lot of these grains are still relatively tight, we have had a one-year, massive increase in production of wheat, barley, soy beans and corn; and that's starting to put a lot of pressure on prices for this particular year."

Meanwhile ABB Grain in South Australia has revised its barley pool estimates for the season ahead.

The malting barley pool lifted $5.00 a ton to $175-$185 and the feed barley pool has dropped $5.00 to $130-$140.